Saudi Arabia’s real estate sector is seeing unprecedented growth, with real estate loans reaching a record high of SR883.3 billion (£235.5 billion) by the end of 2024. This marks a significant 15.12% increase compared to the previous year, as strong demand from both individual and corporate borrowers continues to drive the market, according to data from the Saudi Arabian Monetary Authority (SAMA).
Corporate real estate loans experienced a substantial growth of 26.23%, totaling SR202.04 billion. Lending to individuals, however, accounted for the majority of the loans at SR681.24 billion, a 12.19% increase from the prior year. Together, real estate financing now constitutes approximately 30% of all bank loans in the country, which currently stand at SR2.96 trillion.
This rise reflects increasing confidence in Saudi Arabia’s property market, with both institutional investors and corporate clients capitalizing on favorable financing conditions. Large-scale commercial and residential projects are being developed, with many of these projects aligning with the country’s Vision 2030 urban development goals. Notable examples include the Sports Boulevard and King Salman Park, which are attracting significant global investment as they move into their development phases.
Unlike previous years, when smaller developments were predominantly funded through off-plan sales, today’s projects are relying more heavily on sophisticated financing methods, particularly debt. As a result, Saudi banks have teamed up with the Ministry of Housing to provide streamlined financing solutions, supporting real estate companies in enhancing efficiency and delivering high-quality developments in line with the country’s ambitious growth targets.
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